Netflix facing class action lawsuit over Warner Bros. deal
FILE-Netflix logo displayed on a phone screen, Warner Bros logo displayed on a phone screen and HBO Max logo displayed on a phone screen are seen in this multiple exposure illustration photo taken in Krakow, Poland on December 10, 2025. (Photo by Jak
Netflix is facing a lawsuit to block the streaming giant’s $72 billion acquisition of Warner Bros Discovery’s studio and streaming businesses.
On Dec. 8, a proposed class action lawsuit was filed by a subscriber to Warner Bros-owned HBO who alleges that Netflix's potential deal threatened to minimize competition in the U.S. subscription video-on-demand market, Reuters reported.
RELATED: Netflix acquiring Warner Bros. studio in $72 billion deal. What it means for viewers
News of the lawsuit comes after Netflix announced on Dec. 5 that they were acquiring Warner Bros. studio in an enormous financial deal.
Netflix lawsuit
The backstory:
Michelle Fendelander, a Las Vegas-based HBO Max subscriber, asserts in her lawsuit that if Netflix’s deal were to be approved, it would limit competition in the subscription streaming market.
The Los Angeles Times reported that Fendelander is asking the court to issue an injunction to prevent the Netflix-Warner Bros. Discovery merger from happening or issue a solution for the anti-competitive effects.
Citing the lawsuit, Reuters noted that the lawsuit states that the Warner Bros deal with Netflix would exclude one of Netflix’s closest rivals, HBO Max, and give Netflix control over Warner Bros franchises including Game of Thrones, Harry Potter, and DC Comics.
What is Netflix saying about the lawsuit?
The other side:
Netflix released a statement on the lawsuit, which was obtained by Reuters, stating, "We believe this suit is meritless and is merely an attempt by the plaintiffs’ bar to leverage all the attention on the deal."
How does the Netflix deal impact viewers?
Dig deeper:
By merging the two companies, Netflix said in a release that this will create more viewing options for consumers between their streaming platform and the Warner Bros. film and television libraries as well as HBO and HBO Max programming.
Additionally, popular TV shows and movies like "The Big Bang Theory," "The Sopranos," "Game of Thrones," "The Wizard of Oz" and the DC Universe will join Netflix’s catalog of programming including "Wednesday," "Money Heist," and "Bridgerton."
What does the deal mean for HBO Max subscribers?
Big picture view:
Netflix's announcement did not provide details of any official plans of what the merger may mean for HBO Max subscribers.
Forbes reported that Netflix co-CEO Ted Sarandos said on an investor call that HBO and its streaming service HBO Max, which features shows like "The White Lotus," and "The Last Of Us," will continue to operate as standalone services. But Netflix co-CEO Greg Peters said the company has "a lot of options to figure out how you package things in different ways."
In June, Warner announced its intention to split its streaming and studio operations from its cable business plans for HBO, HBO Max, as well as Warner Bros. Television, Warner Bros. Motion Picture Group, DC Studios, to become part of a new streaming and studios company.
The Associated Press reported that networks like CNN, Discovery and TNT Sports and digital products like the Discovery+ streaming service and Bleacher Report would make up a separate cable counterpart called "Discovery Global."
Discovery Global will become a new publicly-traded company, in a process now expected to be completed in the third quarter of 2026.
The Source: Information for this story was provided by previous LIVENOW from FOX reporting, the Los Angeles Times, and Reuters. This story was reported from Washington, D.C.